diff --git a/peer.go b/peer.go
index eed6c552..a8aaf204 100644
--- a/peer.go
+++ b/peer.go
@@ -53,6 +53,17 @@ const (
 	// pingTimeoutMinutes is the number of minutes since we last sent a
 	// message requiring a reply before we will ping a host.
 	pingTimeoutMinutes = 2
+
+	// connectionRetryInterval is the base amount of time to wait in between
+	// retries when connecting to persistent peers.  It is adjusted by the
+	// number of retries such that there is a retry backoff.
+	connectionRetryInterval = time.Second * 10
+
+	// maxConnectionRetryInterval is the max amount of time retrying of a
+	// persistent peer is allowed to grow to.  This is necessary since the
+	// retry logic uses a backoff mechanism which increases the interval
+	// base done the number of retries that have been done.
+	maxConnectionRetryInterval = time.Minute * 5
 )
 
 var (
@@ -2015,6 +2026,9 @@ func newOutboundPeer(s *server, addr string, persistent bool, retryCount int64)
 		if p.retryCount > 0 {
 			scaledInterval := connectionRetryInterval.Nanoseconds() * p.retryCount / 2
 			scaledDuration := time.Duration(scaledInterval)
+			if scaledDuration > maxConnectionRetryInterval {
+				scaledDuration = maxConnectionRetryInterval
+			}
 			srvrLog.Debugf("Retrying connection to %s in %s", addr, scaledDuration)
 			time.Sleep(scaledDuration)
 		}
diff --git a/server.go b/server.go
index 345d64ea..474efca0 100644
--- a/server.go
+++ b/server.go
@@ -39,10 +39,6 @@ const (
 	// server.
 	supportedServices = wire.SFNodeNetwork
 
-	// connectionRetryInterval is the amount of time to wait in between
-	// retries when connecting to persistent peers.
-	connectionRetryInterval = time.Second * 10
-
 	// defaultMaxOutbound is the default number of max outbound peers.
 	defaultMaxOutbound = 8
 )
@@ -307,7 +303,9 @@ func (s *server) handleDonePeerMsg(state *peerState, p *peer) {
 			// Issue an asynchronous reconnect if the peer was a
 			// persistent outbound connection.
 			if !p.inbound && p.persistent && atomic.LoadInt32(&s.shutdown) == 0 {
+				delete(list, e)
 				e = newOutboundPeer(s, p.addr, true, p.retryCount+1)
+				list[e] = struct{}{}
 				return
 			}
 			if !p.inbound {